Malaysia asks its Attorney-General's Chambers to weigh legal action over undelivered Naval Strike Missiles

Malaysia has referred its dispute over the cancelled Naval Strike Missile order to the Attorney-General's Chambers, which will advise on possible legal action against the Norwegian defence company that failed to deliver the anti-ship missiles. Deputy Defence Minister Adly Zahari disclosed the step in an interview with Berita Harian published on 26 October, and the New Straits Times carried the same account later that morning. The missiles were meant to arm the Royal Malaysian Navy's Littoral Combat Ships.

Adly said the referral covers a claim of more than RM1 billion against the company for direct and indirect costs that followed Norway's unilateral decision to revoke the export licence for the system. According to both papers, Malaysia had already paid 126 million euros, about RM583 million and 95 per cent of the contract value, before the licence was withdrawn.

The deputy minister explained that because the case touches on international law, the ministry needs several policy decisions and must consult the Attorney-General's Chambers before it puts a proposal to the Cabinet. He added that the ministry is looking at other options alongside the legal route, and that any action must protect national interests and allow the claim to be settled lawfully.

The supplier is Kongsberg Defence and Aerospace. The New Straits Times reported in July that the Defence Ministry had sent the company a notice of demand in May seeking 226 million euros, or about RM1.05 billion, and that the two sides would open negotiations in mid-August on the advice of the Attorney-General's Chambers. According to that report, Kongsberg told the ministry on 4 February that Norway had suspended export licences for both missile contracts without explanation, and the company treated the move as force majeure. Delivery had been due in March.

Berita Harian and the New Straits Times said Norway made the revocation permanent on 20 April, when its deputy foreign minister informed the Malaysian Defence Ministry of the decision.

On a replacement, Adly said the ministry is weighing several procurement routes, including an open tender or a government-to-government deal, which he described as a common choice once the required technology has been identified. He named Turkiye as one of the countries under consideration, alongside others he did not list, and said the replacement system would be decided soon. The New Straits Times reported that the ministry intends to settle the choice this year.

Adly also addressed the warship itself. He said the ministry would not compromise on the technical specifications of the first Littoral Combat Ship, even though its handover to the navy has slipped from the end of this year to April 2027. Sea trials must show that every system meets the specifications before the navy accepts the vessel, and the ship will return to dock for rectification if faults are found. He said ministry officers have been placed at Lumut Naval Shipyard to monitor construction and testing, while matters of building and payment now sit with the Finance Ministry and the shipyard.

Separately, in the Dewan Rakyat on the same day, Adly told lawmakers that other purchases, including the Littoral Mission Ships and the FA-50 light combat aircraft from South Korea, were on schedule. He said the Defence White Paper had been revised last year to cover new areas such as cyber defence, and that Malaysia had defence plans running to 2050.

Neither newspaper said whether Malaysia intends to sue in a national court or seek international arbitration, how long the Attorney-General's Chambers will take, or which missile is now favoured. The reports did not include a response from Kongsberg or the Norwegian government to the referral.